ASX-listed European energy business Hartshead Resources has completed an A$11-million capital raise to study work on the development of its Anning and Somerville gasfields, in the UK.
The company said it had received firm commitments for the placement of 400-million new shares, at a price of 2.75c each, from a number of Australian institutional and UK Family office investors.
The shares will be issued under the company’s existing placement capacity.
Hartshead directors subscribed for a total of A$500 000 of new shares, subject to shareholder approval at an upcoming shareholder meeting.
The funds raised will be used to fast-track the Phase 1 field development of the Anning and Somerville gasfields, which will include an engineering study recently agreed upon with energy major Shell, for a preferred offtake route and agreed tie-in option.
The engineering study will focus on the tie-in of Hartshead’s Phase I gasfield development to Shell’s infrastructure, which will provide a basis of design and cost estimate for the tie-in of facilities through Shell’s infrastructure, detailing the required brownfield modifications as part of the gas offtake route for the Anning and Somerville gasfields.
The study work will be undertaken by Petrofac and managed by Hartshead, with Shell to provide project assurance, prior to entering the next phase of engineering work, which is the front-end engineering design (FEED), prior to final field development plan (FDP) submission to the UK government.
The engineering study with Shell will define Hartshead’s route to transport its natural gas and condensate to the prospective points of sale, therefore representing a critical component of the future FEED and FDP workstreams.
The study is expected to take three months to complete.